The broader cryptocurrency market has staged an evident revival over the past 24 hours, with multiple leading digital assets well in green territory.
For instance, altcoins like Zcash (ZEC) and Dash (DASH) have pumped by 20-30% on a daily basis, while Arbitrum (ARB) and Hyperliquid (HYPE) have posted more modest gains of 5-6%. However, some, like Bittensor (TAO), have tumbled by double digits.
The Biggest Loser
TAO is the worst-performing cryptocurrency (at least in the top 100) today, with its valuation briefly sinking to $253, the lowest since mid-March. Currently, it trades at around $263 (per CoinGecko), down 20% from yesterday’s figure. Its market capitalization fell to approximately $2.5 billion, and now TAO is the 38th-largest cryptocurrency.
The price decline was likely triggered by Covenant AI’s departure from the Bittensor network. The entity is a research group focused on building decentralized AI models, best known for creating Covenant-72B.
Covenant AI left Bittensor after claims that one person, co-founder Jacob Steeves, held too much control over key decisions. In their official message, they insisted that emissions to their subnet were suspended, their permissions were removed, and changes were made without their involvement, which they saw as proof of centralized governance.
The news captured the attention of numerous crypto commentators. X user Ash Crypto claimed that, in addition to leaving Bittensor’s network, Covenant AI has reportedly sold 37,000 TAO worth more than $10 million.
X user Ardi spotted another interesting development surrounding the cryptocurrency. He argued that 24 hours before the news, sell volume hit its highest level since December 2024.
“If you think that’s a coincidence, you don’t understand the game you’re playing. This was a calculated exit and execution. The wallets that already knew what was coming were unloading into the breakout attempt yesterday, using that strength to nuke millions in size well before the headline hit the market.”
Ardi warned traders and investors to be careful, noting that they operate in a market where information is “uneven, positioning is predatory, and you are exiting liquidity until you understand the game being played.”
Buying Opportunity?
TAO’s performance may be unsatisfactory, but some analysts, like Crypto Tony, said it only gives opportunity vibes.”
The asset’s Relative Strength Index (RSI) signals a short-term rebound could indeed be on the horizon. The technical analysis tool measures the speed and magnitude of recent price changes and runs from 0 to 100.
Ratios below 30 indicate that TAO is oversold and ready for a potential resurgence, whereas anything under 70 is considered a precursor of a correction. As of this writing, the RSI stands at a mere 16.
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